- Congress preserved the IRS’s $11.2 billion annual budget through December 11, 2026.
- The stopgap bill blocked more than $11.6 billion in another rescission during the funding period.
- Lawmakers approved H.R. 6,500, but the full fiscal 2027 budget remains unresolved.
Congress approved a stopgap measure preserving the IRS’s $11.2 billion annual budget through December 11, 2026, while blocking a second rescission of more than $11.6 billion during the temporary funding period.
The measure keeps the agency operating at current funding levels. It also prevents an interruption that otherwise would have begun when existing funding expired.
The House passed the bill by 370–48 on September 1, 2026. The Senate approved it 90–6 on August 8, 2026.
The legislation is the Continuing Appropriations and Extensions Act, 2027, also known as H.R. 6500. The House approved the Senate-passed language after an earlier House version omitted the provision preventing the second rescission.
The measure blocks a shutdown but leaves the next budget unresolved
Without congressional action, the shutdown would have started on September 30, 2026. The stopgap instead carries IRS funding forward temporarily.
That extension does not establish the agency’s full fiscal year 2027 budget. Lawmakers still must negotiate a longer-term appropriations package later in the year.
The bill’s immediate effect is limited but direct: IRS operations continue, and the agency avoids another reduction during the continuing-resolution period.
| Funding issue | Result under the stopgap |
|---|---|
| Annual IRS funding | $11.2 billion |
| Additional rescission during the CR period | Blocked, at more than $11.6 billion |
| Temporary funding period | Through December 11 |
| Longer-term fiscal year 2027 budget | Still unresolved |
The second reduction would have come on top of an earlier cut. Congress had already rescinded $11.6 billion in IRS funding through the Consolidated Appropriations Act, 2026 (P.L. 119-75), enacted in February 2026.
The continuing resolution prevents that earlier reduction from being applied again during the temporary funding period. The provision therefore protects the agency from an additional immediate loss while Congress works on the next appropriations agreement.
The funding decision does not restore the previously rescinded amount. It blocks another application of the cut during the continuing resolution.
Lawmakers must return before the temporary funding expires
Congress will need to act again before the temporary measure runs out. Lawmakers are likely to revisit the issue in a lame-duck session, with funding needing an extension beyond December 11.
Until then, the IRS will operate under the funding level carried by the stopgap. The next agreement will determine whether that level continues or changes for fiscal year 2027.
This article is for informational purposes only and does not constitute tax advice. Consult a qualified tax professional or CPA about your specific situation.
